Zebra OneCare for Printers Frequently Asked Questions Updated: May 29, 2015 Contents 1. Introducing the new Support Services Portfolio: Zebra OneCare... 2 2. Services Portfolio Refresh Impact... 4 3. Quoting, Pricing, Discounts & Price Concessions (Price Exceptions)... 10 4. Order Processing and Contract Operations... 11 5. Frequently Asked Questions regarding Zebra OneCare in Latin America and Asia Pacific)... 14 ZEBRA, ZEBRA TECHNOLOGIES, and the Stylized Zebra Logo are trademarks or registered trademarks of ZEBRA Technologies and are used under license. SYMBOL is a trademark owned by Symbol Technologies, Inc., which is a wholly owned subsidiary of ZEBRA Technologies. All other trademarks are the property of their respective owners. 2015 ZEBRA Technologies. All rights reserved. 1 P a g e
1. Introducing the new Support Services Portfolio: Zebra OneCare We are pleased to launch the new Zebra OneCare Services as part of the integration of the Enterprise division of Motorola Solutions and Zebra Technologies into the new Zebra, The new Zebra OneCare Services combine the best of Service from the Start and ZebraCare. It covers all product lines of the new company. It introduces a new set of features. It is part of the new Zebra Services Portfolio which includes a brand new proposition for our business partners and customers. This FAQ document will focus on the changes to our break / fix or the RUN portion (see graphic below) of the portfolio for Zebra printers. Support Services for MSI and Psion products and Managed Services will be covered in separate documents. The graphic below illustrates our Services strategy. As our customers deploy technology from Zebra, they will need services from Zebra and our partners to support them through the life cycle of the solution. Zebra and our partners help our customers PLAN by designing a strategy for the adoption of wireless, mobile, print and scanning technologies. We help our customers IMPLEMENT new networks, devices, and applications. We pilot, stage, and deploy. We provide training for users to embrace our technology. We help our customers RUN their solutions through our world class technical support, repair operations and online Visibility Services. These solutions reduce downtime, improve value and productivity, and help protect our customer s investment in our technology. Zebra and our partners ensure that our customers deployment of technology is secured for its lifetime. PLAN SERVICES ENC DCS EMC SPG RUN IMPLEMENT & ADOPT 2 P a g e
Q: What is Zebra OneCare? A: Zebra OneCare is the Support Services Portfolio of the new Zebra Technologies. It derives from the product set known as Service from the Start for Enterprise Products and ZebraCare for Printer Products. Q: Why is a service contract so important? A: A Zebra OneCare Service Contract: Gives customers enhanced support over and above standard warranty coverage. Promotes peace of mind and business continuity. Protects product uptime while helping to ensure reliable, consistent product performance. Helps to minimize unforeseen repair expenses with comprehensive repair service coverage. Provides ongoing support for the complete solution with help desk support and troubleshooting assistance. Includes software support which provides access to software releases and technical support resources. Q: Why are we refreshing the Support Services Portfolio? 1. We are refreshing the portfolio as part of the integration between the Enterprise division of Motorola Solutions and Zebra Technologies. 2. We are introducing a series of enhancements to the Portfolio which transforms the value proposition. 3. The refresh simplifies the products and processes so they re easier to buy and resell. 4. Our goal is to enable our partners to attach services to the whole Zebra solution, including printers, mobile computers, WLAN, RFID, scanners and software. Q: Will the brand names Service from the Start or ZebraCare still be used? A: No, the Service from the Start and ZebraCare branding will be retired and all support services will move under the Zebra OneCare brand. Q: What will the new Support Services Portfolio be called? A: The new Support Services Portfolio will be known as Zebra OneCare. One indicates that we are one company, with one set of Support Services. Zebra OneCare will be the Support Portfolio name for both Enterprise and printer products. Care carries the prime value of our Support Services, that we are focused on delivering a reliable set of support services that include maintenance, technical support, replacement, logistics, commissioning, and configuration. 3 P a g e
Q: Can Operation Visibility Services (OVS) be added on for the Zebra Printers? A: OVS will be available for LinkOS enabled printers only. A Zebra OneCare agreement must be purchased in addition to OVS for enablement. Q: How will the new program impact Zebra repair operations? A: Our internal teams are fully trained on the programs changes and are prepared to continue supporting you at the high levels you have come to expect from Zebra.. We want to ensure you continue to enjoy the benefits of Zebra service. We will ensure that we continue to meet and exceed the service levels expected by our ZebraCare contracted printer customers. Q: How does the new portfolio add value for our channel partners? A: The Portfolio is designed with our channel partners in mind. It offers partners a new set of opportunities for revenue. The new portfolio offers some new features and capabilities which our partners can leverage for additional revenue opportunities. Partners are enabled to purchase and resell Zebra OneCare, passing the agreement back to their end users, as well as continue to renew expiring contracts. Partners are also enabled to wrap their additional services around Zebra OneCare. 2. Services Portfolio Refresh Impact Q: What is changing? A: Zebra is rebranding the current printer Service portfolio including ZebraCare Standard/Warranty Plus, Comprehensive, Advantage and Advantage Plus service offers into Zebra OneCare Essential and Select. See new names below: ZebraCare Standard/Warranty Plus, Comprehensive return to factory services will become Zebra OneCare Essential ZebraCare Advantage return to factory services will also fall under the Zebra OneCare Essential package but you will continue to be able to receive the expedite level of service as an option under that part of the program. ZebraCare Advantage Plus return to factory services will become Zebra OneCare Select (not available in LA and APAC unless otherwise noted within an individual country. Advanced Exchange will be included in Zebra OneCare Select (subject to availability). ZebraCare Onsite services will also be available under Zebra OneCare (not available in EMEA, LA and APAC unless otherwise noted within an individual country). Second and next 4 P a g e
business day onsite service levels will be available under Essential. Same business day onsite service will be available as a Select service. Zebra will continue to offer separate service part numbers and prices for service purchased within 30 days of the printer point of sale and for older units that did not get service attached initially with the printer. Q: What is new? A: The new Essential and Select support services include some new features, as summarized in the table and subsequent sections below. A complete description of the new Portfolio features can be found on AccessZebra, Marketing Store or The Source. The availability of new features, per service, will be as follows: New Feature ESSENTIAL SELECT (Phase 2 APAC) 8x5 Level 1 Support INCLUDED 24x7 (Phase 2 EMEA) Firmware and Software Enablement INCLUDED INCLUDED User assessment / on line training INCLUDED INCLUDED Commissioning (Phase 2 EMEA, APAC) Battery Maintenance/Refresh (Phase 2 EMEA), APAC) OPTION OPTION INCLUDED OPTION Availability of services may vary by country and printer product line. Phased in options and features will be made available to customers as they are released Q: What features are in the Essential and Select offers? ESSENTIAL SELECT (Phase 2 APAC) Term 3 and 5 years 3 and 5 years O/S Software Upgrades Included Included Support Help Desk 8x5 24 X 7 (Phase 2 EMEA) Comprehensive On Line Return Material Authorization (RMA) Included Tabletop, Card Option Included Included Tabletop, Card Option Included 5 P a g e
Services Dashboard Future Future User assessment / on line training Included Included Spare Pool Management N/A Included Commissioning (Phase 2 EMEA, APAC) Option Included Repair Turnaround Time Return Shipping Battery Maintenance/Refresh (Phase 2 EMEA, APAC) 3 days NA,5 day ROW Ground Option: Next Business Day Option Same day shipment of replacement device Next Business Day Option On Site Tabletop Service Option Option Availability of services may vary by country and printer product line. Phased in options and features will be made available to customers as they are released Q: Will the actual Services SKUs change? A: Yes. All existing service SKUs will become obsolete and will be replaced by new Essential and Select Service SKUs. Q: What will the Services SKUs change to? A: We are changing the SKUs to incorporate the program and options. We are embedding the actual length of term into the part number as the complete number of years instead of writing it as if it were an extended warranty on top of the manufacturer s warranty. For example, we will refer to agreements as having 3 year terms, not 1+2 year terms. Per partner feedback this will make it easier to discuss and sell the service. Also, we have refashioned the model specific part numbers into product line based part numbers as appropriate. As an example, we have consolidated the different part numbers associated with the QLn220, QLn320, QLn420 in to a smaller set of part numbers for the QLn product line. Finally, we are moving to a global part numbering scheme so that fixed services have the same base meaning across the globe. Prices will still vary regionally as will availability of offering and service levels. 6 P a g e
See below table for an outline of the new Zebra OneCare part number configuration: Essential Example: Z1 A E - Z Q 5 X - 5 C 0 Select Example: Z1 A S - Z Q 5 X - 1 C 0 Z1 Age Program Level - By Product 4 letter code - Years Comp opt Battery opts (mobile only) A = New E = Essential depot QLn Series = QLNX Depot new = 3 or 5 B = Previously owned F =Essential nbd depot ZQ500 = ZQ5X Onsite New = 1 or 3 C = Comprehensive M = Battery Maintenance R = Battery Refresh (where Xi4 Series =XI4X Previously owned = 1 or 3 R = Renewal S =Select Depot available) 0 = Printhead for tabletop, Card not 1= Essential NBD Onsite ZXP3 = ZXP3 Renewal = 1 or 2 included 0 = default, no selection 2= Essential 2BD Onsite ZXP1 = ZXP1 4 = Select SBD X = Express Replacement Example part numbers: Z1 A E - QNX0-3 C M = New Printer, Essential 5 Day TAT, QLN, 3 Year, Comprehensive, battery maintenance Q: How will the new SKUs be communicated? A: SKUs will be included in the Zebra OneCare Price list for printers on AccessZebra and the Marketing Store. The change will be communicated to Partners and Distributors through communications prior to the Launch Date. Q: What is the timeframe when Zebra OneCare services may be purchased? A: Zebra OneCare can be purchased any time prior to Zebra s published End of Service date. Zebra maintains separate SKUs and prices for devices to be covered as new, previously installed or renewing. Please refer to the Zebra OneCare Price List or configurator. Q: Is Comprehensive Coverage still included? A: Both Zebra OneCare Essential and Zebra OneCare Select services will include Comprehensive for all Mobile, Desktop and Kiosk Printers. For the Tabletop and Card printer lines, Comprehensive coverage will be a selectable option where currently available under both Essential and Select offers Q: Is Printhead coverage available? A: Printheads will be covered where Comprehensive Coverage is applicable. There will be some limitations applied on the coverage of printheads. 7 P a g e
Q: What is Zebra s practice when a customer consistently returns printers/devices for repair, for which no fault or trouble is found? A: It is Zebra s intention to work with our partners and their end users to reduce the number of returns with which no fault is found. We describe these devices as No Trouble Found ( NTF ). There is no need for the customer to be without a device with which there is no fault. It will always be positive if we and our partners can focus the end user s activity on increasing the availability of their devices. Zebra will work with relevant parties to help define and implement an action plan to reduce NTF below the threshold set. In our new terms and conditions, we state that Zebra reserves the right to monitor NTF returns from Customers. If the NTF rate is greater than 10% (the NTF Threshold ), of the total returns from a Customer per calendar quarter across all Customer s deployed devices, Zebra will work with Customer to identify the reasons for such excessive NTF and will establish an action plan aimed at reducing the NTF rate to under the Threshold. Q: What happens if the return rate fails to remain within the threshold after implementing the action plan? A: There is potential that Zebra will invoice for time and materials for each NFF/NTF return over the threshold but the intent is to work with partners and customers to reduce it. A sustained period of high NFF/NTF may also affect renewal and new contract pricing. Q: What is Zebra s practice when a customer consistently returns devices for repair which are physically damaged? A. Zebra reserves the rights to charge for excessive damage. This will be included in our terms and conditions. Our intention is to work with partners and customers on action plans that reduce the number of devices affected by physical damage. Zebra monitors the rate of units that are returned for repair and which are physically damaged. If the rate is greater than 30% (what we call the Excessive Damage Threshold ) of the total returns from a Customer per calendar quarter across all Customer s deployed devices, Zebra will develop an action plan aimed at reducing the rate to under the threshold. Q: If the return rate fails to remain within the threshold after implementing the action plan what will happen? A: There is potential that Zebra will invoice for time and materials for each repair carried out over the Excessive Damage Threshold, but the intent is to work with partners and customers to reduce it. A sustained period of high physical damages may also affect renewal and new contract pricing. Q: What is Zebra s practice with regards to printheads consumption through the repair process under the new program? A: A printhead is the most critical component in your printer, and possibly the most delicate. It is a consumable item just like the brakes on your car, which will eventually wear over time. However, with on-going careful attention and maintenance, the life of the printhead can be extended. Media quality, 8 P a g e
pressure and heat settings and proper maintenance, all have an impact on how long a printhead will last. Zebra reserves the rights to charge for excessive printhead replacements under the program where Zebra finds that the consumption is consistently excessive, due to not following cleaning recommendations or, damage caused due to the environment or poor media quality or handling. This will be included in our terms and conditions. Our intention is to work with partners and customers on action plans that reduce the number of printheads required in an installation. This will be to our mutual benefit as it increases uptime and decreases returns. Zebra monitors the rate of units that require a printhead and the frequency of wear or damage across the printhead elements. If the rate of replacement is greater than 40% (what we call the Excessive Printhead Threshold) of the total returns from a Customer per calendar quarter across all Customer s deployed devices, Zebra will develop an action plan with them aimed at reducing the rate to under the threshold. Q: Will standalone Software Support be available in the new Zebra OneCare portfolio? A: Zebra intends on releasing a new software support program in a later phase. Q: Will options such as commissioning, battery refresh, collection, etc. be available? A: New options will become available. Please see the below table for all options that will be available after the refresh launch. Please refer to the previously listed Features chart. Certain options such as Onsite service, Battery Maintenance, will be embedded into the core service part number part number. Other options such as Commissioning will be treated as add-on services with a separate part number Q: What reporting options will be available under Zebra OneCare? A: Reporting is a standard feature in all Select offers. In a later release phase, customers entitled to reporting under their coverage will be upgraded to online reporting dashboards. See specific Reporting FAQs below. Q: The Zebra OneCare Services for the Enterprise products include elements or options such as online reporting tools, 24x7 support, User Devise Apps, Learning Assessments, etc. Will these be available for the printer services also? A: Although we are working to a tight alignment between Enterprise and Printer service, not all features and options will be immediately available or appropriate across some product lines. As Zebra moves into new phases of the programs certain features and options will either become open for purchase or, customers will be automatically upgraded as appropriate in Zebra s determination. Q: When will these changes be announced? A: Our target date for announcing the changes is 30 days in advance of the launch date. The announcement will include a reference to a series of updates Zebra will publish on a Quarterly Basis. 9 P a g e
Q: Have you taken into consideration the 30 Day Notice required to communicate changes like this to Distributors, Partners and Customers? A: Yes, the Partner Training slide deck provides insights on the announcement timeline supporting this effort. Q: What will happen to the legacy Motorola Service from the Start for Zebra mobile printers? A: Legacy Motorola Service from the Start for Zebra printers will go end of sale as we launch the new Zebra OneCare Essential and Select offers. Q: What about customers who have purchased the Service from the Start for a Zebra Printer in the past. A: All Service from the Start printer contracts will be honoured through to their expiration dates and customers will be able to renew these contracts under the terms of the Zebra OneCare Essential and Select offers. For EMEA, customers can renew under the new program using specific part numbers being issued specifically for this continuing customers. Q: What will happen to ZebraCare On-Site Services? A: ZebraCare On-Site service for Zebra printers will convert to the new program at the same time as the depot offerings. 3. Quoting, Pricing, Discounts & Price Concessions (Price Exceptions) Q: Will there be Price Changes? A: Every effort has been made to keep price changes to a minimum for the new Zebra OneCare services. However, as with any major refresh or re-alignment, it can sometimes result in a rebalancing/repositioning of certain price points. For example, as we consolidated the QLn pricing into a single set of SKUs by product line, we have kept the Essential service pricing in-line with the old ZebraCare offering for the QLn320, only slightly raising the price for customers with the QLn220 service, but decreasing the price for customers with the QLn420 service. We felt that the simplification to a reduced SKU series offsets any changes to pricing. Pricing re-alignment has also been put in place to re-balance the Comprehensive service options for Tabletop printers between depot and on-site offerings, to minimize the difference in price. Note: Zebra reserves the right to make pricing adjustments on individual product services as business dictates. Any changes that may be required will be made in accordance with all existing notification processes/requirements. 10 P a g e
Q: How will Zebra manage contract renewals? A: Renewals can be quoted up to 120 days prior to contract expiration. This means that on the day the program goes live, there will be three to four months of renewal quotes generated with old support SKUs. Q: Will Zebra continue to retain the current support programs and accept purchase orders (POs) for renewals quoted with the previous service offers? A: A Grace Period of 90 days will be put in place in order to honour POs received based on the original set of SKUs. These will be booked but customers will not gain the additional benefits under the new programs. All previously quoted pricing and discounts will be honoured. Q: What about Price Concessions (PC) or Price Exceptions (PE)? A: If a Price Concession or Exception was in effect for an old SKU, the contracts team will accept a PC or PE under the old SKU for a period of 3 months. After the third month the price concession will need to be resubmitted against the new SKU. Q: What about current promotions for the ZQ500 and G series/hc 100? Will they be discontinued at the launch? A: These Promotions will continue through the previously communicated end date. The terms and entitlements of these promotions will continue to be those of the prior ZebraCare program 4. Order Processing and Contract Operations Q: Will the order process and where we submit purchase orders for contracts on Zebra devices change under this refresh? A: No, contracts for the Zebra printer products will continue to be administered and entered through your current in-region Zebra contract administration group. Please note that the systems and processes for engaging Zebra printer service contract will remain essentially unchanged. Q: Will the order process and where we submit purchase orders for contracts on Zebra devices change under this refresh? A: No, contracts for the Zebra products will continue to be administered and entered through your current in-region Zebra contract administration group. 11 P a g e
Q: Will customers carrying active contracts be entitled to receive the new features? A: No, all currently active ZebraCare contracts will remain in effect at the current level of service and terms and conditions until the contract expiration date. Upon reaching their renewal date, customers will be offered the Essential or Select level of service. Q: Can a ZebraCare customer transition to Essential / Select before expiry if they want to realize the Essential or Select benefits? A: Yes, if a customer decides to upgrade their service level to the Essential or Select offer before contract expiration for whatever reason, we would update the existing contract and invoice any additional cost if applicable. Typically, a support change is done as a credit and re-bill on the same contract as a new schedule on the contract showing the new support. Zebra will not issue credits for decreased service levels or prices. Q: How will we manage end user customers with multiple ZebraCare contracts that don t coterminate? A: Renewed contracts will be individually updated with the new level of service as they expire. Q: How will we work with partners who actively manage end users with multiple ZebraCare contracts that don t co-terminate? A: Renewed contracts will be individually updated with the new level of service as they expire. Q: How will we manage customers whose contracts expire after April launch date but whom we are notifying now of their renewal terms? A: Customers will receive sufficient notification and training. Renewal POs that are quoted 3-4 months in advance will be honoured. With the exception of opportunities with a price concession attached to it, there will be a one month cut-off period for new contracts after go-live. Renewals and additions will continue but as manual POs. New distributor contracts quoted before the cut-off can be sent in as a manual PO. Q: How will we manage customers who have contracts with options? A: Partners will purchase new or renewal Essential/Select offers and add the current part number for the option they require. Q: How will Zebra options to Essential / Select be managed? A: Certain core options will be embedded in the main service contract SKU. Other options that are more closely identified as Add-On services, such as battery management, will have a new SKU issued. Orders for these Add-On services should accompany the Zebra part number for the break fix service of the printer. 12 P a g e
Q: For Select contracts requiring a buffer stock (spares pool) will there be any changes to who owns the buffer stock / spares pool? A: No there will be no changes as to who owns the inventory; it remains as detailed on table below: NA, LA, APAC EMEA (where applicable) All Printers Purchased by Customer, managed by Zebra Supplied and managed by Zebra Q: How do we book Purchase Orders for new contracts that we may have received from customers that received quotes using the old set of SKUs? A: A Grace Period of 30 days will be put in place to honour POs received for new contracts based on the original set of SKUs. These will be booked, but customers will not acquire the additional benefits being launched. All previously quoted pricing and discounts will be honoured. 13 P a g e
5. Frequently Asked Questions regarding Zebra OneCare in Latin America and Asia Pacific) Q: How will the programs differ in different regions? A: Essential and/or Select will be available globally wherever similarly scoped ZebraCare services are offered today. We are fully aware that the SLAs and the delivery of these services in different regions are subject to regional regulations and limitations. For most accurate information on where these offers can be obtained in these regions and the deliverable differences (if any), it is best to contact your in region Service Sales Managers. Q: Will Zebra OneCare Select offers be available in Latin America or APAC? A: Regional specific versions of the Select offer may be available in some countries in Latin America. The availability of Select offerings for Asia Pacific is under review but will not be included as part of this release. Please contact your account manager for further details. Q: Will this launch demand new Pricing policies? A: Discounts remain the same. However, some prices will be adjusted to accommodate the program changes and consolidation of products under the new part numbering structure. Please coordinate with your Regional Service Sales Manager to evaluate specific country by country needs. Q: What will be the actual, per country, service availability? A: Country service availability can be found within the Regional Matrix availability. For more information please visit AccessZebra, the Marketing Store, or the Source. 14 P a g e